Public debt of Cameroon increases by 481 billion F

The autonomous sinking fund (CAA) has just published ratings of the financial situation of Cameroon. In this report it was revealed that the public debt of Cameroon had increased by 481 billion F.

The evaluation that accounts for the second quarter of 2014 divided into four main centres opened naturally by the end of June 30, 2014, revealed that the stock of public debt is estimated at 2,900 billion F vs. f 2,790 billion in the previous estimate and this figure represents an increase of 481 billion.

In detail, this envelope is composed of 73.2% of external debt ($ F 2124 billion) and 26.8% of domestic debt (which represents 777 billion). During the second quarter, loans by creditors non-residents amounted to 101 billion. Residents, meanwhile, have been borrowing 45 billion.

On this chapter, the combination of the first two quarters of the year stood at 228 billion, from external donors and 70 billion f for those within the country, which corresponds respectively to 79.2% and 25% of the budget estimates made in this regard in the Finance Act and the strategy of debt for the current year.

In the column of repayments, the settlement of the debt service (conventional sum which the debtor must regularly pay to get themselves out of debt) is estimated at 96.7 billion for the period of April-June 2014.

It is therefore an increase of 5.7% from the previous quarter and 46.1% YOY. Moreover, the repayment of short-term (like Treasury bills) of a $ 44 billion debt continues systematically via the account of Cameroon at the Central Bank.

Analysis from CAA noted that the portfolio average interest rate is 2.1%. External debt, due to the large number of concessional loans (lower-paid), is 2%. On the other hand, the domestic debt interest rate is about 2.2%. Total public debt outstanding is equivalent to 20% of gross domestic product, of which 14.5% comes from 5.5% of national and foreign loans.

Taking into account the proportion of variable interest loans (15.3% of all, against 6% in June 2013), the CAA provided that debt service will be affected by foreseeable variations. However, Cameroon debt remains viable, even if the risks are passed low to moderate due to a shock awaited on revenues in 2016.